Abstract: From the perspective of geographical location and spatial distribution of economic development, this paper builds the Space Durbin Model with the spatial data of 30 provinces and cities of China to analyze the spatial effect on economic growth from regional real estate investment．The results show that：Firstly, the regional real estate investment activities have positive effect on the economic growth, and have stronger cross-regional spatial correlation compared with other input factors．Secondly, there is structural heterogeneity in the spatial spillover effect of real estate investment influenced by the geographical distribution and the level of economic development．Real estate investment plays asignificant positive spillover effect in the region where economic development is more balanced, and has significant crowding-up effect on the economic growth in the region which is geographically approaching but is disparate in economic development．Therefore, the spatial effect and structural heterogeneity of real estate investment should be fully considered in the formulation process of the control policy on real estate market, and implement different policies in the region clarified by the level of economic development rather than geographically approaching level．It is the long-term mechanism to narrow the economic development gap between regions in terms of establishing a healthy and stable development of the real estate market and it is essential to strengthen the driving force for economic growth．

Keywords: real estate investment; spatial effect; Space Durbin Model; economic growth